Cyber security pioneer lifted by £80m US deal

Cyber security firm Sophos soared as it reported an 11pc revenue rise in the three months to December 31 and turned a £10.6m loss a year ago into a £1.4m profit.

Spending on computer security is an increasingly important area for businesses, with estimates that this year they will spend about £78bn fighting off attacks by hackers.

Last year Chancellor Philip Hammond revealed a £1.9bn spending package designed to boost the UK’s defences against online threats, while the Fed pledged to raise its spending on cyber security to around £14bn.

That trend is a great boost for companies such as Sophos, which provides firewalls and email security for businesses.

Sophos, which now expects its free cash flow to more than double for the full year, said that software subscriptions were a key driver for the business.

The firm also announced it had bought US malware protection firm Invincea for £80m. Stockbro- MARKET REPORT by Holly Black ker Numis said the company was ‘ successfully innovating and acquiring to deliver new products to new and existing customers’.

Sophos shares surged 3.8pc, or 10.2p, to 279.9p.

The FTSE 100 edged up 0.04pc, or 2.6 points, to 7188.82.

BHP Billiton was the greatest faller of the day, down 3.4pc, or 47p, at 1341.5p after operations were stopped at two copper mines in Chile. Metal miner Glencore was down 1.8pc, or 5.8p, at 312.1p.

Tullow Oil revealed that revenue plunged 21pc to £1bn for the year.

Profit at the oil and gas firm fell 8pc to £436.5m and it posted a loss after tax of £480,000.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: ‘2016 was an important year for Tullow. The completion and ramp-up of production at its oil field in Ghana means the group now has the tools to start paying down the huge debt mountain it has built up.’

but how effectively the firm can reduce that debt depends on the oil price. While the black stuff rallied to 18-month highs at the end of last year, it has remained relatively flat since at around $55 a barrel.

Tullow has about £3.8bn of debt on its balance sheet. Shares tumbled 5.4pc, or 16p, to 279.3p.

Consultancy firm WS Atkins climbed as a currency boost kept it trading in line with expectations in the third quarter of the year.

The firm, which is focused on design, engineering and project management, said trading in the UK and europe – which accounts for more than half of revenue – had been strong, with the outlook positive as the Government looks to invest in energy, high- speed rail, roads and airport projects.

Peel Hunt said the company was set to benefit from the UK and US governments’ focus on infrastructure spending. Shares rose 1.1pc, or 16p, to 1495p. Dillistone dipped as a weaker pound affected revenue and costs at the business.

The firm, which provides software and technology to the recruitment industry, said it had seen lower sales to new clients because of economic uncertainty. but its database system improved after a ‘challenging’ 2015, with an increase in the number and value of new contract wins in the year. It was a cautious outlook for the year ahead from Dillistone but the business said pre-tax profits were on track to meet expectations. Shares slipped 3.6pc, or 3.5p, to 94.5p. engineering solutions outfit Ver

sarien soared as it launched its new graphene brand, Nanene.

Graphene is a type of carbon made up of sheets which are just one atom thick. Around 200pc tougher than steel, it is believed to be the strongest material in the world. Versarien said it had already secured its first sizeable order for Nanene, which it said could be produced at market-leading prices.

The brand was developed at the University of Manchester.

Versarien’s shares rocketed by 34pc, or 4p, to 15.75p.